30
31
JA Worldwide has once again met the BBB Wise Giving Alliance Standards. More than 65 percent of total expenses are program activity expenses. The following is a brief
discription on how program services and fundraising expenses are used.
Field Service provides assistance and guidance to help the 140 U.S. JA Offices and 114 international member offices provide economic education to local cities and communities.
Support in staff hiring, board recruitment, training, and quality management are services that enable these operations to deliver consistent, high-quality programs to students in the local schools.
marketing and communications provides the print and electronic messages that explain and promote JA Worldwide programs to corporations, volunteers, and educators around the world.
research and development efforts continually evaluate and upgrade existing programs as well as develop new curricula and supporting materials to provide the most effective instructional package possible.
human resources reflects one of our primary organizational values—that people are our most important asset. This group helps maintain high standards of staffing across the nation and throughout the world that, in turn, provide the quality personnel necessary to support the organization.
Fundraising reflects JA Worldwide’s cost to solicit contributions from our donors.
JA Worldwide (the Organization) was established as a corporation on July 1, 2004 as a result of the merger between Junior Achievement, Inc. and Junior Achievement International. The merger originated on September 10, 2003 when the boards of directors for Junior Achievement, Inc.
and Junior Achievement International endorsed the consolidation of Junior Achievement, Inc. with Junior Achievement International.
JA Worldwide reaches out to the international community by serving international member offices that develop and implement economic education programs for young people through a partnership between business and education.
JA Worldwide reaches out to the local community through a network of affiliates, which inspires and prepares young people to succeed in a global economy. JA Worldwide teaches students in kindergarten through 12th grade about business and economics, and accomplishes its mission by placing a volunteer in the classroom to present JA Worldwide’s educational curricula and materials. An affiliate is a community-based organization that serves a specific geographic area. Each affiliate is incorporated under the guidelines of its respective state and bylaws, which govern the actions and responsibilities of the Office’s board of directors.
The headquarters office and the affiliates join together under the terms of a signed agreement whose guiding principle is mutual support. As of June 30, 2007, 140 chapters existed in 50 states. The affiliates’ financial statements are not included in the financial statements of JA Worldwide since it does not have a controlling interest in the affiliates’ board of directors or a financial interest in the affiliates’ operations. The bylaws of each affiliate designate a similar purpose not-for profit organization to receive the residual interest of an affiliate in the event of dissolution.
The Organization’s primary revenues come from corporate and private contributions, federal and private grants, and fees charged to affiliates.
The accompanying financial information has been prepared using the accrual basis of accounting. Audited financial statements are available upon request.
The current financial information is presented on a non consolidated basis which is different from prior years. In prior years financial information was reported on a consolidated basis with Junior Achievement-Young Enterprise Europe.
During the fiscal year, an agreement to be a funder of last resort expired and there was no need to extend the agreement, so JA-YE financial information is not included.
32
ASSEtS
Current Assets
Cash and cash equivalents $ 1,499,597 $ 2,259,393
Cash and cash equivalents held for affiliates 2,825,294 1,196,559
Investments 5,623,555 5,017,068
Contributions receivable, net 7,192,822 4,292,349
Federal grants receivable 1,846,334 1,208,111
Affiliate accounts receivable, net 1,191,222 1,372,422
Inventory 5,308,520 4,902,487
Prepaid expenses 1,232,451 578,001
Accounts receivable – other 19,783 16,288
Total current assets 26,739,578 20,842,678
Contributions receivable, net of Current Portion and Allowance 1,416,241 479,664
Affiliate Accounts receivable, net 122,791 118,787
Fixed Assets, net 8,759,015 6,619,665
$ 37,037,625 $ 28,060,794
2007 2006
33 LiABiLitiES And nEt ASSEtS
Current Liabilities
Accounts payable – trade $ 6,728,666 $ 3,972,510
Accrued liabilities 238,986 235,684
Deferred revenue 201,588 181,875
Current portion of capital lease obligations 214,034 241,533
Current maturities of long-term debt 418,574 –
Checks in process of clearing – 68,679
Funds held for affiliates 2,825,294 1,196,559
Total current liabilities 10,627,142 5,896,840
Long-term debt 673,976 330,533
Total liabilities 11,301,118 6,227,373
net Assets
Unrestricted, undesignated 7,528,872 8,126,949
Board-designated 2,198,237 2,116,576
Total unrestricted net assets 9,727,109 10,243,525
Temporarily restricted 16,009,398 11,589,896
Total net assets 25,736,507 21,833,421
Total liabilities and net assets $ 37,037,625 $ 28,060,794
2007 2006
34
Support and revenue
Federal grants $ 6,369,293 $ – $ 6,369,293 $ – $ 6,369,293 Contributions 1,642,473 9,000 1,651,473 10,214,489 11,865,962 In-kind contributions 354,974 – 354,974 6,000,000 6,354,974 Materials sales 12,443,098 – 12,443,098 – 12,443,098 Area license fees 4,533,365 – 4,533,365 – 4,533,365 Special events 738,875 – 738,875 – 738,875 Investment return 763,041 117,700 880,741 74,584 955,325 Other income 76,573 – 76,573 38,573 115,146 Net assets released from restrictions 11,908,144 – 11,908,144 (11,908,144) –
Total support and revenue 38,829,836 126,700 38,956,536 4,419,502 43,376,038 Expenses
Program services
Field services 12,910,422 – 12,910,422 – 12,910,422 Communications and marketing 2,135,641 – 2,135,641 – 2,135,641 Research and development 15,524,106 – 15,524,106 – 15,524,106 Human resources 1,166,100 – 1,166,100 – 1,166,100
Total program services 31,736,269 – 31,736,269 – 31,736,269 Support services
Management and general 5,686,900 4,200 5,691,100 – 5,691,100 Fundraising 2,004,744 40,839 2,045,583 – 2,045,583 Total support services 7,691,644 45,039 7,736,683 – 7,736,683
Total expenses 39,427,913 45,039 39,472,952 – 39,472,952 increase (decrease) in net Assets (598,077) 81,661 (516,416) 4,419,502 3,903,086 net Assets, Beginning of year 8,126,949 2,116,576 10,243,525 11,589,896 21,833,421 net Assets, End of year $ 7,528,872 $ 2,198,237 $ 9,727,109 $ 16,009,398 $ 25,736,507
Unrestricted Board Total
Designated Total
Unrestricted Temporarily Restricted
35 Support and revenue
Federal grants $ 5,035,090 $ – $ 5,035,090 $ – $ 5,035,090 Contributions 1,768,824 17,065 1,785,889 7,463,494 9,249,383 In-kind contributions 296,425 – 296,425 300,000 596,425 Materials sales 11,703,091 – 11,703,091 – 11,703,091 Area license fees 4,352,764 – 4,352,764 – 4,352,764 Special events 1,089,750 – 1,089,750 – 1,089,750 Investment return 91,886 158,910 250,796 211,592 462,388 Other income 75,866 – 75,866 58,752 134,618 Net assets released from restrictions 6,817,071 – 6,817,071 (6,817,071) – Total support and revenue 31,230,767 175,975 31,406,742 1,216,767 32,623,509 Expenses
Program services
Field services 11,122,513 – 11,122,513 – 11,122,513 Communications and marketing 1,237,323 – 1,237,323 – 1,237,323 Research and development 12,484,396 – 12,484,396 – 12,484,396 Human resources 1,216,873 113,457 1,330,330 – 1,330,330
Total program services 26,061,105 113,457 26,174,562 – 26,174,562 Support services
Management and general 3,872,703 2,591 3,875,294 – 3,875,294 Fundraising 2,027,987 79,568 2,107,555 – 2,107,555 Total support services 5,900,690 82,159 5,982,849 – 5,982,849
Total expenses 31,961,795 195,616 32,157,411 – 32,157,411 increase (decrease) in net Assets (731,028) (19,641) (750,669) 1,216,767 466,098 net Assets, Beginning of year 8,857,977 2,136,217 10,994,194 10,373,129 21,367,323 net Assets, End of year $ 8,126,949 $ 2,116,576 $10,243,525 $ 11,589,896 $ 21,833,421
Unrestricted Board Total
Designated Total
Unrestricted Temporarily Restricted
36
Operating Activities
Changes in net assets $ 3,903,086 $ 466,098
Items not requiring (providing) operating activities cash flows
Depreciation and amortization 1,511,098 1,485,310
Loss (gain) on sale of fixed assets 42,416 (657)
Realized and unrealized gains on investments (1,216,606) (298,252)
Changes in
Increase in pledges receivable (3,837,050) (122,590)
Increase in grants receivable (638,223) (149,982)
Decrease in accounts receivable 173,701 232,507
Increase in inventory (406,033) (931,095)
Decrease (increase) in prepaid expenses (201,694) 202,970
Increase in accounts payable and accrued liabilities 2,759,458 743,042
Increase (decrease) in deferred revenue 19,713 (162,333)
Net cash provided by operating activities 2,109,866 1,465,018 investing Activities
Purchase of investments (4,160,613) (4,550,100)
Purchases of fixed assets (2,341,661) (667,129)
Sale of investments 4,770,732 3,864,290
Sale of trust assets – 46,175
Net cash used in investing activities (1,731,542) (1,306,764)
Financing Activities
Repayments of capital lease obligations (304,381) (256,144)
Distributions under charitable remainder trust agreements – (22,656)
Principal payments on debt (765,060) (63,582)
Increase (decrease) in checks in process of clearing (68,679) 68,679
Net cash used in financing activities (1,138,120) (273,703)
decrease in Cash and Cash Equivalents (759,796) (115,449)
Cash and Cash Equivalents, Beginning of year 2,259,393 2,374,842
Cash and Cash Equivalents, End of year $ 1,499,597 $ 2,259,393
Supplemental Cash Flows information
Interest paid $ 24,751 $ 30,654
Acquisition of equipment through capital lease obligations $ 225,044 $ 31,350 Capital lease obligations decreased from leased
equipment traded in during the year $ 10,097
Acquisition of software through note issuance $ 1,578,915 $ –
2007 2006
37 Mr. Ainar D. Aijala, Jr.
Global Managing Partner Deloitte Touche Tohmatsu Mr. Lemuel Amen
Division Vice President-Track and Trace Solutions
3M
Mr. Thomas Bata, Sr.
Honorary Chairman Bata Limited
Mr. Alejandro Luis Bottan Regional Executive
GE South America Area Operations, GE International
Mr. Don R. Bouc President Emeritus Nelnet, Inc.
Mr. Perry O. Brandorff President-HR Consulting Hewitt Associates LLC Ms. Catherine S. Brune
Senior Vice President & Chief Information Officer
Allstate Insurance Company Ms. Susan B. Butler President (Retired)
Accenture Foundation Mr. Brian Chermside Global Industry Executive Director Dow Corning Corporation Mr. Paul C. Chou Chairman
Chou Family Foundation Mr. Juan Cintron Presidente
Consultores Internacionales C.L.B.
Mr. Jorgen M. Clausen President & Chief Executive Danfoss SA
Mr. John L. Clendenin
Chairman & Chief Executive Officer (Retired) BellSouth Corp.
Mr. John C. Cushman, III Chairman of the Board
Cushman & Wakefield, Inc.
Mr. Gerald M. Czarnecki Chairman and Chief Executive Officer The Deltennium Group, Inc.
Mr. Charles H. Dana Executive Vice President (Retired) Owens Corning
Ms. Katherine R. Davisson Director of Client Services
Eton Park Capital Management Mr. Ralph de la Vega President & Chief Executive Officer AT&T Mobility
Dr. Michel De Wolf CPA, Managing Partner DGST Reviseurs d’entreprises Mr. Samuel A. DiPiazza, Jr.
Chief Executive Officer PricewaterhouseCoopers LLP Mr. Michael L. Ducker Executive Vice President, International FedEx Express
Ms. Tina S. Flaherty President & Chief Executive Officer Image Marketing International Ms. Patricia L. Francy
Treasurer/Controller (Retired); Special Advisor for Alumni Relations
Columbia University
Mr. William M. Freeman Mr. James L. Freer Americas Vice Chair, People Ernst & Young LLP
Mr. Edward G. Galante Senior Vice President (Retired) Exxon Mobil Corporation Mr. Donald E. Garretson Chief Financial Officer (Retired) 3M
Ms. Pamela George
Senior Vice President-Corporate Affairs (Retired)
Sybase
Mr. Stedman Graham Chairman and Chief Executive Officer S. Graham & Associates
Mr. W. Grant Gregory Chairman
Gregory & Hoenemeyer, Inc.
Mr. George A. Helland Mr. Elwood D. Howse, Jr.
President
Cable & Howse Ventures Mr. William J. Hybl
Chairman & Chief Executive Officer El Pomar Foundation
Mr. Louis Imbrogno, Jr.
SVP-Worldwide Technical Operations PepsiCo, Inc.
Mr. Clyde D. Keaton President & Chief Executive Officer Argo Turboserve Corporation Mr. Arthur D. Little Trustee
The Little Family Foundation Dr. Walter Loewenstern Co-Founder (Retired)
ROLM Corporation Ms. Dana Manciagli
General Manager, Worldwide System Builder Channel
Microsoft Corporation Mr. Bill Mathis
Executive Vice President-Business Development
MasterCard Worldwide Mr. Denman K. McNear
President & Chief Executive Officer (Retired) Southern Pacific Transportation
Dr. James P. Moody Senior Financial Advisor Merrill Lynch
Mr. Kristian P. Moor
Executive Vice President and President, Domestic Brokerage Group
American International Group, Inc.
38
Mr. Langhorne A. Motley Principal
L.A. Motley, L.L.C.
Mr. Bruce P. Nolop Executive Vice President & CFO Pitney Bowes Inc.
Mr. Peter S. Ordway
Chairman, President & Chief Executive Officer (Retired)
Union Pump Company Mr. William G. Poist President & CEO (Retired) Commonwealth Energy Systems Dame Mary Richardson Chief Executive
HSBC Education Trust Mr. James E. Rutrough
Vice Chairman & Chief Administrative Officer State Farm Mutual Automobile Insurance Company
Mr. John S. Scheid
Chairman, Global Leader Insurance Assurance Services
PricewaterhouseCoopers LLP Mr. David L. Shedlarz Vice Chairman
Pfizer Inc
Ms. Valerie Soranno-Keating President, Traveler’s Cheque Department American Express
Dr. Graham B. Spanier President
The Pennsylvania State University Dr. Gus A. Stavros
Chairman of the Board & Chief Executive Officer
PELAM Investments, Inc.
Mr. Albert E. Suter Chief Operating Officer (Retired) Emerson
Mr. Michael D. Towers Director
Duckhorn Wine Co.
Mr. R. Thayer Tutt, Jr.
President & Chief Investment Officer El Pomar Foundation
Mr. Francesco Vanni d’Archirafi Chairman
Citibank Europe
Dr. Evgeny Velikhov President
RRC-Kurchatov Institute Mr. Theodore L. Weise
President & Chief Executive Officer (Retired) Federal Express Corporation
Mr. Richard A. Woods
Senior Vice President-Corporate Affairs Capital One
39 Gerald M. Czarnecki
President & Chief Executive Officer Jack E. Kosakowski
Executive Vice President &
Chief Operating Officer
President – Junior Achievement USA Timothy Armijo
Chief Financial Officer Howard D. Bartner
Senior Vice President – Operations Western U.S. Region
Don Creveling Senior Vice President Human Resources Linda Claflin Senior Vice President
Asia/Pacific and Americas Regions Peter V. Curcio
Senior Vice President – Operations Eastern U.S. Region
Thomas G. Dewar Senior Vice President Development Cynthia Hofmann Senior Vice President
Marketing and Communications Tom Inscho
Interim Senior Vice President Information Technology Caroline Jenner Senior Vice President Europe Region Soraya Salti Senior Vice President
Middle East/North Africa Region Steve Schmidt
Senior Vice President – Operations Midwestern U.S. Region
Buzzy Thibodeaux
Senior Vice President – Operations Southern U.S. Region
Shannan Beeler
Regional Vice President – Operations Western U.S. Region
Lyn Bergdoll
Regional Vice President – Operations Eastern U.S. Region
Jennifer Bodensiek Vice President
Development – East John Box Vice President
Product Development and Support Ken Brown
Vice President Procurement Jackie Dant
Regional Vice President – Operations Southern U.S. Region
Frank W. Evans Vice President
Benefits and Compensation Lisa Frye
Vice President
Employment and Employee Relations Keith M. Gall
Vice President
Capstone Programs Development and Support Christy Kunz
Regional Vice President – Operations Midwestern U.S. Region
Lamech Mbise Vice President Africa Region Frances Neu Vice President Development – South Debra Stinton Othitis Vice President
Development – West Kevin Pacht Vice President
Information Technology Leslie Pierce Vice President
Learning and Talent Management
Kris Ponciroli Vice President
Field Fundraising Services Oldo Vanous
Vice President – Operations Europe Region
Geoff Wilson Vice President
Volunteer Initiatives and Program Support
40
Junior Achievement believes that being environmentally responsible helps future generations succeed.
This annual report was printed at Monroe Litho (www.monroelitho.com) which operates on 100 percent wind power, is a Certified Environmental Protection Agency Green Power Partner and a Forest Stewardship Council Certified Chain-of-Custody Supplier.
Printed on paper containing
50 percent recycled content including 25 percent post-consumer waste.
Thanks to Junior Achievement of Rochester, New York, for their assistance with the printing of this annual report.
Printing of the 2006-2007 JA Worldwide annual report was generously donated by Deloitte &
Touche USA LLP.